Trading Update

RNS Number : 5267M

PRS REIT PLC (The)

17 September 2019

 

17 September 2019

PRSR.L

The PRS REIT plc

("Company" or "PRS REIT")

Trading Update

The PRS REIT, the closed-ended real estate investment trust established to invest in new build, family homes in the private rented sector ("PRS"), is pleased to provide an update on progress since the close of the financial year, noting that the interim report of Sigma Capital Group plc ("Sigma"), also published today, comments on its PRS REIT-related activities. Sigma's subsidiaries are Investment Adviser and Development Manager to the PRS REIT.

Progress since the start of the new financial year has continued positively, in line with management expectations.  A summary of this progress to the end of 31 August 2019 is provided below.

			At 31 August 2019	At 30 June 2019
Number of completed PRS units			1,289	1,173
	Estimated rental value of completed units		£11.76m p.a.	£10.70m p.a.
	Completed PRS units are on:
	-	completed sites	17	17
	-	part-completed sites	8	4
Total contracted* development			At 31 August 2019	At 30 June 2019
	Number of completed and contracted* sites		59	54
	Number of completed and contracted* units		4,718	4,369
	Gross development cost of completed and contracted* sites		£734m	£661m
	ERV of completed and contracted* sites		£46.0m p.a.	£41.0m p.a.

The number of completed homes as of 31 August 2019 stood at 1,289 across 17 fully-completed sites and eight part-completed sites. The estimated rental value of these homes is £11.76m per annum.  At the end of August, 59 sites were either completed or contracted for development, with the gross development cost amounting to £734m. Once all of these sites have been fully completed and let, the Company's annual rental income is expected to rise to approximately £46.0m from an estimated 4,718 units.

Completed assets are performing well, with rental demand strong, and key costs remain in line with management expectations.   

Approximately 91% of the Company's total net funding is now in deployment and the balance of c. £90m is committed to sites that are expected to be contracted over coming months. The total portfolio is now anticipated to comprise approximately 5,400 new family homes, reflecting a combination of factors, including increasing allocation to sites in the South East.  The overall yield target for 2022 at stabilisation remains at 5.5 pence per share.

The Company will be publishing its audited full year results on 25 September.

*DEFINITIONS

Contracted

refers to sites under construction (under a design & build contract), which have been purchased by the PRS REIT or the PRS REIT's Investment Adviser (forward sold to the PRS REIT).

This announcement is released by The PRS REIT plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

The PRS REIT plc Steve Smith, Non-executive Chairman	Tel: [phone] (c/o KTZ Communications)
Sigma PRS Management Limited Graham Barnet	Tel: [phone]
N+1 Singer  James Maxwell, James Moat, Ben Farrow	Tel: [phone]
G10 Capital Limited (AIFM) Gerhard Grueter, Anthony Wood, Gaia Udage	Tel: [phone]
KTZ Communications Katie Tzouliadis, Dan Mahoney	Tel: [phone]

NOTES TO EDITORS

About The PRS REIT plc
(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. It has raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.   

LEI:  21380037Q91HU97WZX58

About Sigma Capital Group plc
(www.sigmacapital.co.uk)

Sigma Capital Group plc ("Sigma") is a private rented sector, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. It has a well-established track record in assisting with property-related regeneration projects in the public sector, acting as a bridge between the public and private sectors. Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc. In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc and is Investment Adviser to The PRS REIT plc. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.

 

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